Serial communication is used for all long-haul communication and most computer networks, where the cost of cable and synchronization difficulties make parallel communication impractical. Serial computer buses are becoming more common even at shorter distances, as improved signal integrity and transmission speeds in newer serial technologies have begun to outweigh the parallel bus's advantage of simplicity (no need for serializer and deserializer, or SerDes) and to outstrip its disadvantages (clock skew, interconnect density). The migration from PCI to PCI Express is an example.

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Many serial communication systems were originally designed to transfer data over relatively large distances through some sort of data cable.

Practically all long-distance communication transmits data one bit at a time, rather than in parallel, because it reduces the cost of the cable. The cables that carry this data (other than "the" serial cable) and the computer ports they plug into are usually referred to with a more specific name, to reduce confusion.

The communication links, across which computers (or parts of computers) talk to one another, may be either serial or parallel. A parallel link transmits several streams of data simultaneously along multiple channels (e.g., wires, printed circuit tracks, or optical fibers); whereas, a serial link transmits only a single stream of data.

Although a serial link may seem inferior to a parallel one, since it can transmit less data per clock cycle, it is often the case that serial links can be clocked considerably faster than parallel links in order to achieve a higher data rate. Several factors allow serial to be clocked at a higher rate: